El Salvador has taken a new step toward sustainability and energy independence with the approval of the Law for the Promotion of the Use of Renewable Energy, a proposal from the Executive Branch designed to strengthen the country’s energy mix and provide citizens with innovative, clean alternatives to meet their electricity needs.
The Legislative Assembly approved the initiative with broad support from the Nuevas Ideas, PCN, and PDC parties. The law, consisting of 15 articles, seeks to encourage the installation of renewable energy systems—both conventional and non-conventional—while enabling their storage and reinjection into the national electricity grid.
The new framework establishes a series of tax incentives and rights for end-users, making renewable energy more accessible for households and businesses. For a period of 10 years, imports, sales, installations, and maintenance of renewable energy generation systems will be exempt from all taxes. These benefits apply to economic activities that involve the importation, marketing, and installation of renewable energy equipment, as well as to maintenance services for these systems.
Oversight will be provided by the General Superintendency of Electricity and Telecommunications (SIGET), which will regulate requirements and procedures for both suppliers and users. Meanwhile, the Consumer Ombudsman’s Office will ensure that the advantages granted to companies are reflected in better prices and services for consumers.
El Salvador already had a legal framework promoting renewable energy generation, but this new law introduces clearer fiscal benefits and user protections, reinforcing the government’s commitment to sustainable growth and environmental responsibility.
With this legislation, El Salvador continues positioning itself as a regional leader in renewable energy adoption, advancing toward a cleaner, more efficient, and future-ready energy system.